SWITZERLAND - Swiss funds are in general content with their long-term asset allocation and are only making tactical adjustments, according to consultancy Lusenti.   The optimistic sentiment among funds regarding their long-term strategic asset allocations has even improved a little since the end of 2007, the Swiss consultancy Lusenti discovered in its latest survey of 152 pension funds.   The average rating for their asset allocation on a scale from -1 to +1 went up to +0.25 from +0.13 nine months earlier, Lusenti confirmed.   "As in previous surveys, we found a significant tactical overweighting of cash and an underweighting of not only CHF bonds but also foreign equities," the consultancy noted.   Both measures are seen as a "cautious and defensive approach, given market developments".   At the same time, allocations to alternative assets such as hedge funds and commodities increased to 7%, partly because additional investments were made and in part because their rise accompanied a decline in the value of equities portfolios.   Commodities was one of the three only asset classes to contribute positively to portfolios in the first half with returns of +13.6% but "completely turning around" in the third quarter.   More stable performers were Swiss indirect and direct real estate, generating returns of 3.1% and 2.5% respectively and raising the negative returns of the funds to -5.46% for the first six months.   "Real estate is an important basis for institutional investors in Switzerland," said Lusenti.   The pension funds surveyed have combined assets under management of CHF218.7bn (€142.2bn) to the end of June, which is around 35% of Swiss pension funds assets.

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